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Direct Video Broadcast Competes with In-Flight Broadband for Airline Passenger Entertainment Dollars

Mon, 01/25/2010 - 7:54pm
In-Stat

Direct Video Broadcast Competes with In-Flight Broadband for Airline Passenger Entertainment Dollars

Live broadcast video is also poised for significant growth in 2009, according to market research and consultancy firm In-Stat http://www.in-stat.com. While this service is more established than in-flight broadband, usage revenues are still anticipated to nearly double in 2009 to reach almost a quarter of a billion dollars, nearly five times the size of the in-flight broadband market.

However, the compelling demand for Wi-Fi connectivity among airline passengers drives higher growth for in-flight broadband.  By 2011, in-flight broadband service revenue will exceed that of direct video broadcast, with in-flight broadband revenues of $761 million.

The airline industry is desperately trying to better monetize its cabins.  Direct video broadcast services and in-flight broadband services are two compelling ways that provide passengers with a better customer experience while allowing the airline industry to add incremental revenue.  It is a true win/win.

Recent research by In-Stat found the following:

  • The majority of direct video broadcast deployments belong to LiveTV, with Panasonic being their largest competitor.

  • In-Stat expects that, in later forecast years, IPTV will contribute a portion of in-flight video revenues.

  • The number of broadband enabled airplanes will increase from 25 in 2008 to 800 in 2009.

  • Airline passengers will generate over $47 million worldwide in 2009. In-flight broadband equipment revenue will nearly double between 2009 and 2013.

  • In-Stat forecasts over 200 million annual in-flight broadband connects by 2013, with long-haul connects dominating over short-haul connects.

This Market Alert is drawn from the In-Stat research,   Delayed Departure: Will In-Flight Broadband Take Off? (#IN0904520WBB), which covers the market for next-generation in-flight entertainment (IFE), with a focus on in-flight broadband services. The global report includes:

  • Forecasts of in-flight broadband and DBS video, including installments, equipment revenues, usage, and usage revenues, with segmentation regarding the length of the flights.
  • Expectations of in-flight IPTV introduction and ensuing revenue.
  • Detailed comparisons of principal competitors and customers, in terms of technologies, business models, and market share.
  • Correlations with the hotspot market and strategies learned from terrestrial Wi-Fi services that can be applied to the in-flight market.
For more information on this research or to purchase it online, please visit: http://www.instat.com/catalog/mmcatalogue.asp?id=281 or contact a sales representative: http://www.instat.com/sales.asp

The price is $2,995 (US).

This research is part of In-Stat's Wireless LAN service, which examines new applications for WLAN chips and devices in the business, home, and public sectors. The service covers emerging technology trends, as well as extension technologies like wireless mesh networking and wireless security.

Related In-Stat research:

Global Wi-Fi Chipset Forecast and Analysis: 2007 to 2013

Wi-Fi in Consumer Electronics: The Swiss Army Knife Technology

2008 Global Hotspot Market—A Time of Change and Growth

4Q08 WLAN Market Share Report

Shifting to Embedded: 2008 Worldwide Cellular Modem Market

More Information on this Research

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